Circular economy and energy efficiency key to manufacturing sustainability

Sustainability is now a driving force for change in the manufacturing industry, which is receiving large amounts of funding on the UK’s journey to net-zero carbon emissions by 2050.

One of the most prominent sustainability trends in the industry is the transition towards a circular economy. This involves moving away from the traditional linear ‘take-make-dispose’ model and towards a more sustainable system where resources are reused, recycled and repurposed. For manufacturers, adopting a circular economy approach not only reduces waste but also presents cost-saving opportunities and enhances their environmental reputation.

In a report, published by business advisory firm BDO, figures show that almost £1.3bn has been deployed into circular economy investments in the UK in 12 months. BDO’s research found that industrial and manufacturing was the most prominent sector for circular economy investment for the second year in a row, accounting for 36% of deal volumes in 2022, followed by technology, media and telecoms at 25%.

Adding value

Rory McPherson, corporate finance partner at BDO, said: “The transition away from linear business models creates value while working towards sustainability goals. As ESG (environmental, social and governance) continues to move up the agenda, circular economy businesses are extremely attractive to investors.”

Manufacturers are investing in innovative product design, focusing on durability, repairability and ease of disassembly. The goal is to extend the lifecycle of products and components, reducing the need for constant production of new materials. Initiatives such as remanufacturing, where used products are restored to like-new condition, are gaining traction. This not only reduces waste but also creates new avenues for job creation.

The manufacturing industry is also embracing green technologies to reduce its carbon footprint. From renewable energy sources to energy-efficient manufacturing processes, technological advances are shaping a more sustainable future. Solar panels, wind turbines and biomass energy systems are increasingly being integrated into manufacturing facilities to reduce reliance on fossil fuels. Moreover, digital technologies such as the Internet of Things are enabling manufacturers to optimise energy usage and streamline operations. Real-time data collection and analysis help identify energy inefficiencies and wastage, allowing for informed decision-making to enhance sustainability performance.

The Digital Catapult and High-Value Manufacturing (HVM) Catapult have been awarded £2m to deliver a programme to accelerate the adoption of digital solutions that tackle the manufacturing sector’s sustainability challenges.

The funding – which comes from the Department for Science, Innovation and Technology – will enable the two catapults to work alongside industry partners to drive greater resource efficiency and energy efficiency in manufacturing via advanced digital technologies.

As part of the two-year programme, five industry partners will work with Digital Catapult and HVM Catapult to scope and define two real-world sustainability challenges each. Then, around 10 start-ups will join the programme to brainstorm and trial innovative solutions to address these challenges through digital technology.

Boost for productivity

Five manufacturing partners, which are to be supported by experts at Digital Catapult and HVM Catapult, will then use the start-ups’ solutions to help drive down carbon emissions, increase productivity and cut costs.

Katherine Bennett CBE, the CEO of HVM Catapult, said: “Sustainable manufacturing must be the number-one priority for the sector, and the development and integration of digital technologies is critical to this. By bringing together industry heavyweights, technology developers and subject-matter experts to prove-out ideas and develop them rapidly, this programme can find solutions to the biggest challenges facing manufacturers right now.”